Don't Ignore The Insider Selling In Quantum Computing

Some Quantum Computing Inc. (NASDAQ:QUBT) shareholders may be a little concerned to see that the Interim CEO, Yuping Huang, recently sold a substantial US$14m worth of stock at a price of US$14.42 per share. However, that sale only accounted for 4.5% of their holding, so arguably it doesn't say much about their conviction.

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Quantum Computing Insider Transactions Over The Last Year

In fact, the recent sale by Yuping Huang was the biggest sale of Quantum Computing shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$15.11). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 4.5% of Yuping Huang's holding.

Quantum Computing insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Quantum Computing

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Insider Ownership Of Quantum Computing

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Quantum Computing insiders own 16% of the company, worth about US$379m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Quantum Computing Tell Us?

Insiders sold Quantum Computing shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Quantum Computing. Our analysis shows 5 warning signs for Quantum Computing (2 are concerning!) and we strongly recommend you look at these before investing.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.